Santos has commenced drilling of its first appraisal well in the Northern Territory’s Beetaloo Basin, marking a major step towards unlocking long-term domestic gas supplies and boosting regional energy security.
The drill bit broke ground following approval of Santos’ Environmental Management Plan by the Northern Territory Minister for Lands, Planning and Environment.
NT-based contractor Exact Contracting prepared the site, constructing the well pad, access tracks, and road upgrades to facilitate drilling.
The Beetaloo Sub-basin is considered one of the world’s most significant onshore gas opportunities, holding an estimated 430 trillion cubic feet of undiscovered gas-in-place.
Full-scale development could generate up to 6,500 jobs and deliver AU$2.8 billion in economic benefits to the Northern Territory and over AU$9 billion nationally over 25 years.
Santos CEO Kevin Gallagher described the spudding as a milestone to prove the commercial viability of the basin.
“The Beetaloo Basin is a phenomenal resource of national importance,” Gallagher said.
“The first appraisal well is a critical milestone as we work to prove the commerciality of this world class gas resource, with our acreage alone having the potential to supply up to 10 million tonnes per annum (Mtpa) LNG and serve the northern and east coast domestic gas markets for 50 years or more.”
The project follows Santos’ commissioning of the Barossa gas project, which feeds the revitalised Darwin LNG plant. Darwin LNG provides a launch pad for future operations, including potential pipeline connections to the Beetaloo Basin, a second LNG train, and carbon capture and storage integration.
Northern Territory Chief Minister Lia Finocchiaro welcomed Santos’ return to onshore drilling in the region.
“The Beetaloo Basin is now delivering first gas to the Territory, and we are seeing the next wave of investment and development activity gathering momentum,” Finocchiaro said.
“Santos’ return to drilling in the Beetaloo Basin is warmly welcomed and is an important next step in unlocking the basin.”
